With a Decree dated 30.03.2020 the Bulgarian Government determined the procedure for payment of compensations to the employers with the aim of retention of the employees jobs during the State of Emergency announced on the 13.03.2020.
Employers which have suspended partially or in full the business activity of their enterprises as result of an order of a Governmental body or on the ground of issued internal order are allowed to compensations.
Employers who can also qualify for compensations are those who suspended the activity of certain employees or workers (e.g. particular department or production lines), as well as , those who implemented reduced working time for the enterprise based on an internal order of the management.
The compensation shall be available for the employers for the period of the validity of the State of Emergency, but for not more than 3 months. The compensations shall be equal to 60% of the social security base of each employee for January 2020 for whom the above stated suspension measures have been applied. In case of implemented reduced working time the compensation shall be due proportionally for the non-working time, but for not more than 4 hours per day. An employer who benefits from the compensations shall be obliged to retain the employment relations with the employee for an additional period which is equal to the period for which the compensation has been paid.
Employers who apply for compensations shall comply with the following:
- They are local legal entities, local individuals or foreign legal entities performing activity in Bulgaria trough permanent establishment.
- They are allowed to apply for compensation only for the economical business sectors stated in an appendix to the Decree
- They don’t have due payables for taxes, social security contributions or payables for Municipality taxes and fees which have been established and documented by the competent body.
- They are not declared in insolvency, in a procedure of insolvency or liquidation.
- They will retain the employment relations with the employees for an additional period which is equal to the period for which the compensation has been paid
- They won’t terminate any labor contracts of their employees on the ground of provisions of the Labor Code related to decreased volume of work, partial closing of the business or temporary suspension of the work for more than15 days.
- They don’t have established or entered in force acts for violations of the certain provisions of the Labor Code and the Labor Migration and Labor Mobility Act for a period of 6 months before the order for suspension of the business activity.
Employer from other business sectors, in addition to those listed in the Appendix of this Decree, have the right to apply for compensation on the basis of declared reduction of their incomes from sales as:
- Not less than 20% for the month preceding the month of filing of the application for compensation, compared to the same month of 2019 – for entities established before 01.03.2019
- Not less than 20% for the month preceding the month of filing of the application for compensation, compared to the averaged incomes from sales for January and February 2020 – for entities established after 01.03.2019
Excluded from the above rule are certain business sectors as financial and insurance, agriculture forestry and fishing, education, health care and social activities, and self-employed persons.
The full procedure for filing of application for compensation and the required documents are stated on the internet site of the Employment Agency at
https://www.az.government.bg/pages/izplashtane-na-kompensacii-za-zapazwane-na-zaetostta/
